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Crude has flirted with the 50% retracement level several times over the past 8 months and currently is making its best run at a breakout. The 50% line comes into play at $90! As most have noticed, Crude Oil and stocks have had a fairly high correlation over the past many months, with both peaking in April of this year. Now are we about to see upside breakouts in both?
Game Plan…Want to be an owner of Crude Oil on an upside breakout. Will create follow-up posts per taking action on this asset.
Gary….Thanks for the kind wishes. Hope you had a wonderful Christmas as well.
Many of the commodity ETFs have tracking errors so “investor beware!” On an upside break in crude, for aggressive investors, this should work well!
I haven’t been very active recently, but I hope you had a wonderful Christmas.
On the crude thing, what are your thoughts and feelings about using the UCO on a breakout?
Yukon….Great question! DBO and USO are two popular Crude oil etf’s, yet they have a huge tracking error, resulting in following crude poorly to say the least! I track crude on my software.
If you would like to track it on a free website, try the following…
What etf do you recommend to track the price of crude?
I expect crude to do the opposite of the dollar. If dollar up, then crude down, and vice versa. Closely knit together.
B…Yes I suggested to short oil up against the fib/channel resistance, when it was just short of $89. Crude has traded between $90 and $88 since 12/8. Crude is up $1 since the short suggestion, up 1%. Just attempting to do the same thing over and over, being harvest against resistance (score of defense if aggresssive) and buy breakouts. Doing the same with crude, attempting to score on defense, up against stiff resistance, with a tight stop and then will buy a breakout should it happen.
Today’s crude oil post is an update and to share a plan of action should a breakout take place. With the patterns, they are wrong around 35% of the time. I am ok with being wrong, just not ok with being wrong for long.
One thing I should have added to the Crude chart…should it succeed in breaking the 50% level, the 61% level comes into play at $104-$105, another 15% higher in price. This could be a good opportunity if a breakout takes place.
Weren’t you short crude a week ago?